The goal of our partnership with Online Optimism was to improve our return on ad spend and overall revenue to our business. Our expectations were exceeded and we have seen big improvements compared to our previous paid advertising efforts.
CEO
Challenge
As an industry leader in automotive lighting and accessories, ORACLE Lighting enjoys a strong online presence. However, resellers have used their products to muddy the waters on Google search, taking up valuable advertising real estate. While their previous agency produced profitable results, ORACLE Lighting was looking to get a higher ROI from their investment in digital marketing.
Insights
Before beginning an e-commerce campaign, Online Optimism’s Digital Ads team looks at a client’s marketing history for opportunities for success and ways to increase return on investment and return on ad spend.
ORACLE Lighting’s e-commerce marketing strategy only utilized product listing ads in the Google Shopping Network and did not take advantage of bottom-of-the-funnel opportunities such as text search ads. Previous SEM campaigns placed products in very broad categories. This made it difficult for the right ads to show for the right search queries. ORACLE Lighting was in need of advanced product segmentation to optimize bidding strategies and maximize their budget. Additionally, the company faced competition from resellers advertising ORACLE Lighting products in the same ad space, which had previously cut into opportunities for sales.
The client needed to expand its presence on search results beyond product listing ads, while simultaneously capitalizing on the popularity of their brand name and products to protect against resellers.
| MONTHLY PERIOD | RETURN ON AD SPEND | RETURN ON INVESTMENT |
|---|---|---|
| Overall | 588% | 280% |
| MONTHLY PERIOD | RETURN ON AD SPEND | RETURN ON INVESTMENT |
|---|---|---|
| Dec. 2019 | 1063% | 585% |
| Jan. 2020 | 822% | 449% |
| Feb. 2020 | 924% | 499% |
| Mar. 2020 | 938% | 509% |
| Apr. 2020 | 650% | 355% |
| May 2020 | 1208% | 650% |
| Overall | 933% | 508% |
Strategy & Feedback
When we kicked off our campaign with ORACLE Lighting, we added Google Search ads with a strong focus on branded search, and this tactic significantly increased ROI and helped cut into reseller impression share. ORACLE Lighting now appears at or near the top of search results pages with text and product listing ads, in addition to organic listings. This gave them a much stronger hold over the search landscape and helped establish the company as the primary source for their products.
Additionally, the new Google Shopping campaigns utilized ten segmented product groups, compared to three in the company’s previous campaign. These groups were created based on more specific groups of products. As a result of the difference in bidding structure, more products are being shown for relevant searches.
Results
When ORACLE Lighting approached us, the company’s previous campaign provided them with a 588% return on ad spend (ROAS). After just six months with Online Optimism, ROAS reached 933%.
Our dynamic branded search campaign funneled interest in the brand directly to the source. Core products and product groups also had their own campaigns to capture users that were higher in the funnel.
And in March of 2020, when the economy hit a downturn due to COVID-19, ORACLE Lighting’s sales dropped and had a ROAS of only 650% over a full month. However, our work before and during the crisis helped them to bounce back quickly with ROAS exceeding 1200%—the company’s best month yet.
1%
Increase In Return On Ad Spend
1%
Increase In Purchase Rate From Ad Clicks
1%
Drop In Average Cost-Per-Click
From the Client
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